YEREVAN (CoinChapter.com) — On September 10, State Street Global Advisors and Galaxy Asset Management launched three new cryptocurrency exchange-traded funds (ETFs), providing diversified exposure to the rapidly expanding world of blockchain technology and digital assets. The new funds are the SPDR Galaxy Digital Asset Ecosystem ETF (DECO), the SPDR Galaxy Hedged Digital Asset Ecosystem ETF (HECO), and the SPDR Galaxy Transformative Tech Accelerators ETF (TEKX).
DECO and HECO ETFs: Mixing Crypto and Traditional Stocks for Stability
Unlike many crypto-focused funds, DECO and HECO stand out by blending crypto investments with traditional stocks. These ETFs aim to capitalize on blockchain adoption by holding stocks in Bitcoin miners, exchange operators, and even companies like Fidelity and Meta. For example, the DECO ETF holds 7% of its portfolio in the Fidelity Wise Origin Bitcoin Fund (FBTC) to further diversify its holdings.
These funds combine stocks and cryptocurrencies to provide a more stable investment option. They are aimed at those who are interested in digital assets but are wary of the volatility of a single cryptocurrency. According to State Street, these funds focus on companies that are “well positioned to benefit from the proliferation of blockchain technology.”
Actively managed cryptocurrency ETFs: Diversified investments with competitive fees
All three funds are actively managed, unlike typical passive index funds that track a single asset. State Street’s chief business officer, Anna Paglia, described these ETFs as “the next generation of digital asset portfolios.” They offer a managed, diversified approach to cryptocurrency investing.
Management fees range from 0.65% to 0.9%, which is lower than many actively managed funds, but still higher than passive crypto ETFs, which can charge fees as low as 0.25%.
TEKX ETF: Combining Blockchain and AI for Innovative Investments
While the DECO and HECO ETFs invest in both cryptocurrencies and stocks, the TEKX ETF focuses on disruptive technologies such as blockchain and AI. This ETF provides exposure to technology companies that are driving the future of blockchain. TEKX combines blockchain and AI stocks to give investors access to the latest innovations.
These new ETFs from State Street and Galaxy have emerged as investors move away from traditional Bitcoin ETFs. However, they still seek a variety of options. These funds offer a way to gain exposure to the growing digital asset space while reducing risk. Most importantly, they provide an alternative for those who are wary of the volatility of individual cryptocurrency investments.